Intel to drop $5.4 billion Tower deal after China review delay

NEW YORK: Intel Corp will drop its $5.4 billion deal to acquire Israeli contract chipmaker Tower Semiconductor Ltd once their contract expires later on Tuesday without regulatory approval from China, according to people familiar with the matter.

Intel, which signed the deal to buy Tower in February 2022, did not secure approval from Chinese regulators for the acquisition on time as required under the contract, the sources said, requesting anonymity ahead of an official announcement.